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UNION BUDGET 2015 PROPOSALS ON DIRECT TAX as introduced in Lok Sabha on 28 th February 2015 UNION BUDGET 2015 PROPOSALS ON DIRECT TAX as introduced in.

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Presentation on theme: "UNION BUDGET 2015 PROPOSALS ON DIRECT TAX as introduced in Lok Sabha on 28 th February 2015 UNION BUDGET 2015 PROPOSALS ON DIRECT TAX as introduced in."— Presentation transcript:

1 UNION BUDGET 2015 PROPOSALS ON DIRECT TAX as introduced in Lok Sabha on 28 th February 2015 UNION BUDGET 2015 PROPOSALS ON DIRECT TAX as introduced in Lok Sabha on 28 th February 2015 SRF Limited

2 INDIVIDUAL TAXATION No change in Income tax exemption (general) limit of 250,000 HE cess 2% and SHE cess 1% [remain unchanged] Surcharge increased from 10% to 12% in case income exceeding Rs 1crore [additional 2% surcharge]

3 INDIVIDUAL TAX RATE Income without Deduction Upto 250K >250K- 300K >300k- 500K >500K- 1000K >1000K K >10000 K Effective Tax rate % (Pre budget) <60 Yrs >60 Yrs <80 Yrs >80 Yrs Effective Tax rate % (Post budget) <60 Yrs >60 Yrs <80 Yrs >80 Yrs

4 INDIVIDUALS - DEDUCTIONS Exemption limit for investment in financial instruments at 1.5 lakhs u/s 80C [remain unchanged] Transport allowance increased to 1600/month from 800/month Deduction for payment for health insurance premium increased from 15,000 to 25,000 for family [u/s 80D] In case family member is a senior citizen, limit enhanced from 20,000 to 30,000 [u/s 80D]

5 INDIVIDUALS - DEDUCTIONS Deduction in respect of medical treatment of a dependant disabled increased from 50,000 to 75,000 [u/s 80DD] The limit for payment made for severe disability enhanced from 100,000 to 125,000 Limits for Section 80U deduction for self disability modified at par with 80DD

6 INDIVIDUALS - DEDUCTIONS 100% deduction for donation made to the Swachh Bharat Kosh and to the Clean Ganga Fund (applicable from now) [u/s 80G] Sukanya Samriddhi Account: Any deposit made to this account is eligible for deduction [u/s 80C] Any amount (principal & interest both) withdrawal from such account is exempt [u/s 10(11A) newly inserted]

7 CORPORATE TAXATION No change in basic corporate tax rate of 30% Surcharge increased from [additional 2% surcharge] -10% to 12% if income is exceeding 10 Crore -5% to 7% if income is exceeding 1 Crore HE cess 2% and SHE cess 1% [remain unchanged] DDT rate increased from % to %

8 CORPORATE TAXATION for Domestic Company Total Income<=1crore >1crore <=10 crores >10 crores Pre budget Basic % 30 Surcharge % 0510 E cess % 333 Effective tax % Post budget Basic % 30 Surcharge % 0712 E cess % 333 Effective tax %

9 CORPORATE - TAXATION For an undertaking set up on or after & ending before in the notified backward areas of Andhra Pradesh or Telangana:  Additional depreciation on new plant & machinery shall 35% instead of the existing rate of 20% [u/s 32(1)(iia)]  Investment 15% on new plant & machinery [u/s 32AD newly inserted] Deduction of 30% of additional wages paid to the new regular workmen in excess of 50 (earlier limit was 100) [u/s 80JJAA]

10 CORPORATE – TAXATION (DEPRECIATION) Additional depreciation of 20% is allowable. But if the asset is put to use for a period less than 180 days, -additional depreciation is restricted to 10% (50 percent of 20%) and, -balance 10% is wasted Proviso added now allowing that balance 10% to be claimed as depreciation in immediately succeeding year [32(1)(iia)]

11 TDS Trustees of Employee Provident Fund (EPF) will deduct income of the taxable amount if payment exceeds 30,000 [u/s 192A] (Earlier TDS was applicable on actual tax liability u/s 192) No deduction of TDS on making of payment to contractor [u/s 192C(6)] If he is in the business of plying, hiring or leasing of goods carriages furnishes his PAN No and Owns ten or less than ten goods carriage (sec 44AE)

12 TDS The concessional rate of 5% TDS on interest payment to FIIs extended till from last timeline of [u/s 194LD] Person responsible for paying to a non-resident shall furnish information to Govt even if such payment not chargeable to tax w.e.f [u/s 195(6)] Penalty of Rs 1 lakhs for its non compliance [u/s 271-I] No TDS on paying rent to Real Estate Investment Trust (REIT) [u/s 194-I]

13 INTERNATIONAL TAXATION Specified Domestic Transaction [u/s 92BA] will apply if total transaction value exceeds Rs 20 crores (earlier limit was Rs 5 crores) Eligible investment fund (95% contribution of Non- resident) [u/s 9A newly inserted] If the fund management activity carried out by a non related fund manager, the fund shall not constitute business connection in India 13

14 INTERNATIONAL TAXATION TDS rate on payment to Non-residents for Royalty and Fees for Technical services reduced from 25% to 10% [First schedule and Sec 115A] Board to make rules for granting of foreign tax credit [u/s 295] 14

15 OTHER PROVISIONS A Company shall now be said to be resident in India if [u/s 6] its an Indian Company; or its place of effective management (key management and commercial decisions are taken) in India (earlier control & management of affairs in India) Wealth Tax will not be applicable from 1 st April 2016 GAAR has been deferred till

16 OTHER PROVISIONS Corporate Basic tax rate to be reduced to 25% in next 4 years (no specific regulation) Single member bench of ITAT can hear cases upto Rs 15 lakhs now (earlier Rs 5 lakhs limit) No cash acceptance or cash payment is allowed for transfer of immoveable property [u/s 269SS & 269T]

17 17 Thank You *the above presentation is in summarized form and just for information purposes, please consider the relevant Act & Rules in whole before application


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